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Edinburgh trams: Council backs St Andrew Square option Edinburgh trams: Council backs St Andrew Square option
(40 minutes later)
Councillors in Edinburgh have voted to run the trams into the city centre ending the route at St Andrew Square. Councillors in Edinburgh have voted to run the trams into the city centre, ending the route at St Andrew Square.
At a special meeting they threw out the decision made just a week ago to terminate the line at Haymarket At a special meeting, they threw out the decision made just a week ago to terminate the line at Haymarket.
The U-turn comes after the Scottish government said it would withhold £72m of funding for the £1bn project.The U-turn comes after the Scottish government said it would withhold £72m of funding for the £1bn project.
SNP members backed their Lib Dem coalition partners and Labour members also decided at the last minute to support the St Andrew Square option.SNP members backed their Lib Dem coalition partners and Labour members also decided at the last minute to support the St Andrew Square option.
Last week, Labour and Conservative councillors joined forces to reject plans to borrow an extra £230m to run the line into the city centre. Last week, Labour and Conservative councillors joined forces to reject plans to borrow an extra £231m to run the line into the city centre.
Instead, a Labour amendment to stop the line at Haymarket was passed. The move was described as "bonkers" by the chief executive of Edinburgh Chamber of Commerce.Instead, a Labour amendment to stop the line at Haymarket was passed. The move was described as "bonkers" by the chief executive of Edinburgh Chamber of Commerce.
In this latest vote 28 councillors backed the option of running the route down Princes Street and ending it at St Andrew Square, about a mile further east than Haymarket.In this latest vote 28 councillors backed the option of running the route down Princes Street and ending it at St Andrew Square, about a mile further east than Haymarket.
Fifteen councillors voted against.Fifteen councillors voted against.
Work is now due to restart on Princes Street on Monday and trams will run at the earliest in 2014. Councillors were given until 17:00 to hammer out a deal, otherwise contractor Bilfinger Berger could find them in breach and terminate the contract.
The report which came before councillors at the special meeting said: "The option to complete the project to St Andrew Square is believed to yield the best prospect of a return on investment relative to the original aims of the project and to deliver best value for the city, the council and the Edinburgh Tram Project." The Tories again lodged an amendment to tear up the tram contract and re-tender it, despite an estimated £160m cancellation cost, but their motion was defeated in the second round.
It went on to recommend the option to build from Edinburgh Airport to St Andrew Square/York Place be adopted. The council decision authorises chief executive Sue Bruce to enter a settlement agreement with the contractor on "an unconditional basis as to funding".
The report further recommended agreement to fund the borrowing required "out of current and future resources as set out in the funding proposals and to allow the council flexibility to adopt alternative sources if considered appropriate". This means the council expects the additional funding needed, to take the line to St Andrew Square, to remain within the £231m previously set out. But costs could still rise further.
The trams project, which is over budget and late, has been plagued with controversy. Ms Bruce said: "What we now have to do is go away and first of all speak to the contractor to confirm that funding sources have been identified, and to seek to extend the time from 5pm tonight for another week or so to try to get the contract details nailed down."
The issue has divided Edinburgh's politicians, businesses and the public. Edinburgh City Council leader Jenny Dawe said "We have asked the chief executive to continue with her team to negotiate downwards, and I'm confident that they have the right people who will now be embarking and ensuring that the figures that we have been given are as accurate as possible, and where at all possible, efforts will be made to pare down."
Ms Dawe said the agreement could see trams running to the city centre by 2014.
She added: "The best estimate I could give for trams running on the test track would be possibly early next year."
The council leader said the whole process would have to be scrutinised at a public inquiry.
Work on the tram lines scheduled to begin on Princes Street on Monday will be further delayed while the contract is negotiated.
SNP group leader and deputy leader of Edinburgh City Council, Steve Cardownie, said his party had acted to stop the further humiliation for Edinburgh of stopping trams at Haymarket and to protect services from the £161m cost of the contract collapsing.
He added: "The SNP group and the council today had no option but to ensure the continuation of the tram to St Andrew Square.
"The SNP could not run the risk that the unholy alliance of Labour and Tory councillors which got Edinburgh into this tram mess in the first place would bring further embarrassment and do more damage to the city with their disastrous plan to stop the service at Haymarket.
"This tram project could and should have been cancelled in 2007 before this contract was signed."
Leader of the council's Labour group Councillor Andrew Burns said "the utter chaos" surrounding the political management of the trams had been "laid bare".
He added: "There are no winners today. It is another bleak day in a saga that lurches between chaos and farce.
"Now the SNP support the tram project again we need to get the expert advisers from Transport Scotland back on board the management, and I am urging the council to agree to that.
"It was a serious mistake for First Minister Alex Salmond to take them off in the first place."